FHA follows suit and implements a variation to the widely unpopular Home Valuation Code of Conduct (HVCC). HVCC restricts who can order an appraisal. Mortgagee letter 2009-28, which becomes effective January 1st, 2010, prohibits lenders from accepting appraisals prepared by FHA Roster appraisers that were selected, retained or compensated in any manner by a mortgage broker or any member of lender’s staff who is compensated on a commission basis.
Breaking from HVCC, FHA will not require the use of an Appraisal Management Company (AMC) or third party organization for appraisal ordering, but does recognize that some lenders use AMCs and/or third party organizations. FHA notes that any management fees charged by these groups must be for the actual services related to ordering, processing or reviewing of appraisals performed for FHA financing – thus permitting additional cost to the home owner.
